Return on equity increase

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Reference no: EM131308273

Revenues increased by 30 percent in your firm during the past year while total assets increased only 5 percent and Equity Financing Ratios remained constant at 50.0 percent. Return on Equity remained constant at 12.0 percent. Why didn't Return on Equity increase?

A. Total Asset Turnovers dropped

B. Total Margins dropped

C. Both A and B

D. Neither A nor B

Reference no: EM131308273

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